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Nice (NICE) Outperforms Broader Market: What You Need to Know

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Nice (NICE - Free Report) closed at $162.77 in the latest trading session, marking a +2.45% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.78%. At the same time, the Dow added 1.14%, and the tech-heavy Nasdaq gained 0.61%.

Heading into today, shares of the software company had lost 3.83% over the past month, lagging the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.88%.

Investors will be eagerly watching for the performance of Nice in its upcoming earnings disclosure. In that report, analysts expect Nice to post earnings of $2.99 per share. This would mark year-over-year growth of 13.26%. In the meantime, our current consensus estimate forecasts the revenue to be $713.93 million, indicating a 7.46% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $12.37 per share and revenue of $2.93 billion. These totals would mark changes of +11.24% and +7%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Nice. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% increase. Right now, Nice possesses a Zacks Rank of #2 (Buy).

Investors should also note Nice's current valuation metrics, including its Forward P/E ratio of 12.84. For comparison, its industry has an average Forward P/E of 29.16, which means Nice is trading at a discount to the group.

It is also worth noting that NICE currently has a PEG ratio of 1.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.2 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 68, finds itself in the top 28% echelons of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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